TORONTO 鈥� The owners of Ted Baker's Canadian operations have filed for court protection from creditors in a bid to help the retailer get enough "breathing room" to decide whether to liquidate and wind down the business or pursue other unspecified alternatives.聽
In court filings 聽Wednesday, lawyers for the ownership group 鈥� OSL Fashion Canada Inc. and OSL Fashion Services Inc. 鈥� say the clothing brand is facing "significant" liquidity challenges and has been "unsuccessful" in reducing costs, improving sales and reaching positive cash flow in Canada.
OSL Fashion Canada and OSL Fashion Services bought an equity interest in Ted Baker's Canadian and U.S. operations in March 2023 from Authentic Brands Group's No Ordinary Design Label subsidiary.
The Ted Baker Canada owners have licensing agreements with NODL and ABG, whose partners make payments to suppliers in the Ted Baker supply chain, but the Ted Baker Canada owners say some of those payments have not been made, causing "substantial disruptions."
NODL's recent insolvency proceedings in the U.K. have also exacerbated matters, causing some of Ted Baker Canada's suppliers to accelerate payment terms.聽
Ted Baker Canada, which also has Lucky Brand and Brooks Brothers retail operations, has 25 stores in the country across all three banners.
This report by The Canadian Press was first published April 25, 2024.
The Canadian Press
